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5 Essential Loyalty Program Tactics for a Successful Product Launch

Post-product launch ops has many layers to it and it can be daunting. Enterprises are finding creative ways to introduce a product into the market leveraging various customer loyalty tactics.

By

Bharat Menon

6 Min Read

July 11, 2024

Introduction

A product launch is much like welcoming a new member to the family, a blend of excitement and anticipation. With a global average of 30,000 product launches annually and a success rate of just 5%, the journey feels quite daunting.

 

How do established brands like McDonald’s successfully navigate these waters? Meet CosMc, McDonald’s latest drive-thru venture, aimed at engaging the younger audience. This new concept focuses on customizable beverages, offering a fresh twist to the traditional fast-food experience. 

 

Now a key strategy for introducing CosMc into the market is its mobile app and the CosMc Club, its very own loyalty program. Inspired by the success of MyMcDonald’s Rewards which boasts 150 million users, it incentivizes offerings like a complimentary drink upon app download or rewarding points per dollar spent. In doing so, CosMc aims to foster customer loyalty while gaining invaluable insights for personalized customer experiences.

 

In the competitive landscape alongside industry giants like Starbucks and Dutch Bros, CosMc takes a loyalty-first approach that promises growth and aims to redefine the drive-thru experience by blending retro and modern convenience.

Driving Product Launch with a Loyalty First Approach  

Familiarization through Product Sampling

Free samples are one of the oldest tricks in the book. They are a great start to familiarize your customers with your new products. Without needing to invest big in your advertising strategies, or influencer endorsements, freebies can encourage your customers to try them. These samples can

  • go along with a customer’s orders
  • they can take the form of redeemable vouchers or
  • a free sample for every app install

 

Samples can cut through the buzz and sway customers to make favorable purchasing decisions. Freebies also create an urge for reciprocation. The customer receives a sample from the brand and feels compelled to do something to show their gratitude.

 

One study stated, “Treatments which included samples achieved significantly higher purchase rates than treatments which did not, while including discount coupons with samples produced slightly higher purchase rates than samples delivered alone.”  Simply put brands that include free samples see a significantly higher purchase rate than a brand that does not.

 

Sephora, a beauty retail giant, is one of the forerunners in adopting strategic sampling to drive a product launch. Adopting a “try it before you buy it” approach, Sephora enables customers to experiment with beauty products through in-store trials or virtual try-ons. This direct interaction not only enhances the shopping experience but also encourages longer store visits. The Beauty Insider, Sephora’s loyalty program, is a tier-based system consisting of three tiers. VIB (Very Important Beauty Insider), Sephora’s mid-tiered program, offers perks like promotions, gifts, and early access to new products. With an extensive range of over 15,000 beauty products, Sephora effectively uses product sampling and personalization for its existing and new products to grab the attention of customers, increasing the likelihood of purchases. This approach is a powerful driver for product launches, as it boosts consumer confidence and helps build a deeper connection with the brand.

Enhancing CX with a Feedback Mechanism

Your customers are your brand advocates. Whether it be toothpaste or a software tool, one of the quickest ways to analyze the performance of your product is customer feedback. Capturing product information during the early stage will make your product market-ready. It serves as a compass to keep you on track. You can make quick data-driven decisions, keeping guesswork at bay and enhancing the overall customer experience.
 

For instance, surveys and questionnaires not only serve as a goldmine for qualitative feedback for enterprises but also tie in the feeling of inclusiveness for the customers, where they have a say in molding the product.

 

Cloud computing giant, Dropbox leveraged customer feedback for its product launch. 

Dropbox introduced an invite-only beta version where users offered detailed feedback on their experiences with the product. This ranged from the usability perspective and also any features that could be added in the future. 
 

The feedback served as a boon to Dropbox aiding them to fix bugs, making improvements like enhancing the synchronization speed, and also making additions like shared folders.
 

This user-driven approach not only resulted in a highly refined product during its launch but also attracted millions of users to become one of the leading cloud storage service providers globally.

Early product adoption with Experiential Rewards

Experiential rewards are critical in creating a lasting memory. This could take the form of cultural events, early invites, or even concert experiences. But why not leverage it for a product launch? It not only creates a sense of exclusivity in the minds of the customers but also makes them early adopters of the product from an enterprise perspective.

 

Tech giant Samsung leverages numerous experiential rewards like Samsung’s Galaxy Studio to boost its product line. So what is it exactly?
 

Samsung has set up temporary Galaxy Studios across densely populated regions of metropolitans,  popular neighborhoods, or shopping districts. Here, Samsung shows off its new range of products like smartphones or other devices through interactive experiences. These interactions could take the form of hands-on experience with their smart devices or even immersive experiences through VR gaming and storytelling creating an everlasting impression in the minds of the users. 
 

The Galaxy Studio also offers interactive displays showcasing the key features of the device they are testing.
 

By creating such memorable and meaningful interactions, Samsung not only creates an emotional connection with the users but also fosters future early adopters of the products.

Gamify your Launch for Customer Engagement

Recent years have seen enterprises adopt gamification in their product strategies whether it be a product launch or even boost visibility. It increases user engagement which is a great indicator for your product launch.
 
Gamifying your launch can bring excitement to the customers rather than boring big-budget flashy marketing ads. Gamification creates a buzz and encourages excitement for the new product line.

 

Let us take the instance of Magnum. Magnum, an international ice cream brand, was ready to launch its new ice cream – Magnum Temptation. They incorporated gamification into their marketing efforts as a part of their product launch. This included a series of themed games encouraging players to acquire points or “bonbons” to join the leaderboard. The game-like aspect served as a huge driving force for their product launch adding a competitive element for their consumers. 

Boosting order values through Cross-selling and Upselling

Cross-selling involves leveraging the popularity of your existing products to add a new product. It not only aids in introducing a new product line but also drives higher average order values. This could be implemented by offering a discounted price or using gamification techniques. Upselling is another tactic that can be added to your Loyalty Program to promote a new product that is similar but more of an upgrade to your existing product lines. Both cross-selling and upselling could be leveraged in various instances to introduce a new product into the market. 

 

Online retail giant Amazon has perfected the strategies of upselling and cross-selling. By promoting sections such as “people who bought this also bought,” Amazon effectively promotes alternative products and add-ons. This strategy proves invaluable during product launches.

A few key factors in successful upselling and cross-selling include:
1. Understanding customer preferences and values.
2. Introducing the right product at the right time.
3. Educating customers to justify their purchase.

 

Amazon leverages upselling and cross-selling through the power of recommendations, encouraging customers to make more refined purchases.

Drive your Product Launch with the Capillary Suite

Post-product launch ops has many layers to it and it can be daunting. Elevate your product launch success with Capillary’s cutting-edge AI-powered suite. Unlock actionable insights to enhance customer retention, elevate average order values, and maximize customer lifetime value all in one go. Get in touch with our experts today to discover how!

Bharat Menon

Bharat is dedicated to enhancing marketing strategies through digital and content marketing initiatives to drive enterprise efforts. He spends his leisure time geeking out on drums, playing with his bands and watching anime.

Bharat is dedicated to enhancing marketing strategies through digital and content marketing initiatives to drive enterprise efforts. He spends his leisure time geeking out on drums, playing with his bands and watching anime.

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5 Essential Loyalty Program Tactics for a Successful Product Launch

by Bharat Menon

July 11, 2024 | 6 Min Read

Post-product launch ops has many layers to it and it can be

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